Indian Bank targets $2 billion in FCNR (B) deposits by September under new RBI framework

The lender has already raised $140 million since the swap window opened in June, signaling strong appetite for dollar funding among Indian public sector banks.

By Handelsavisen Newsroom · Automated 2026-07-10 12:56 UTC · 1 min read

Indian Bank has secured $140 million in fresh Foreign Currency Non-Resident (B) deposits since the Reserve Bank of India (RBI) launched its new swap window in June.

The public sector lender is now targeting total inflows of $2 billion by the end of September, citing robust demand from non-resident depositors.

South Indian Bank, for instance, has set a target of $1 billion in FCNR (B) inflows by September 2026, accelerating its fundraising efforts following the regulatory change.

The rapid uptake underscores the effectiveness of the RBI’s revised framework, which allows domestic banks to extend credit against foreign currency deposits held by non-residents.

This mechanism is designed to bolster dollar inflows and deepen the corporate bond market by providing banks with stable, long-term funding sources.

Indian Bank’s progress mirrors broader trends in the Indian banking sector.

South Indian Bank, for instance, has set a target of $1 billion in FCNR (B) inflows by September 2026, accelerating its fundraising efforts following the regulatory change.